As the tough crypto winter week nears its end, several key news items have reached the market, making it clearer where some of the major industry players are standing.
First, a problematic crypto hedge fund Three Arrows Capital (3AC) is currently seeking protection from US creditors under Chapter 15 of the US Bankruptcy Code. This allows foreign debtors to protect US assets. Around Reuters.As reportA court in the British Virgin Islands ordered the liquidation of 3AC earlier this week.
Meanwhile, a troubled crypto lender BlockFi Said Subject to shareholder approval FTX US Cryptographic exchange:
- US $ 400 million revolving credit line subordinate to all client funds, and
- Option to get BlockFi at variable price up to US $ 240 million based on performance triggers.
“We haven’t used this line of credit so far and continue to operate all our products and services normally. In fact, we have raised interest rates on our key assets altogether,” said Flori Marquez and Zac Prince of BlockFico. I am. -The founder said in a statement.
They acknowledged that the lender suffered a loss of US $ 80 million from the loan to 3AC, “this represents the full extent of the impact of 3AC on BlockFi.” Also, these losses are “part of the ongoing bankruptcy case of 3AC.”
Meanwhile, another crypto platform that was suffering from 3AC, Voyager Digital, Said It is the “temporary” suspension of transaction, deposit, withdrawal, and loyalty rewards.
“This decision gives us additional time to continue to explore strategic alternatives with various stakeholders while preserving the value of the Voyager platform we built together. Add at the right time. We provide information, “said Stephen Ehrlich, CEO of Voyager. I say in the announcement.
As reportThe company’s exposure to 3AC is BTC 15,250 (USD 293) USDC 350m, they also signed millions of credit line contracts Alameda VenturesQuantitative trading company and parent company FTX Currency exchange.
FTX has become the lender of last resort for multiple cryptocurrency companies. Currently, its CEO and co-founder Sam Bankman-Fried says he is ready to seek acquisitions of abused companies. Bitcoin (BTC) Next is the cryptocurrency mining industry.
“When we think of the mining industry, they play a small role in the spread of possible transmissions, as long as there are miners who have secured borrowings on their mining rigs. A truly fascinating opportunity for us. May come–I definitely don’t want to downplay that possibility. “